Social Security to Reinstate Overpayment Recovery Rate
Reading Time: 2 MinutesLast Updated: March 7, 2025
The Social Security Administration (SSA) announced it will increase the default overpayment withholding rate for Social Security beneficiaries to 100 percent of a person’s monthly benefit. The Office of the Chief Actuary estimates this change will result in an increase in overpayment recoveries (i.e., a program savings) of about $7 billion in the next decade.
“We have the significant responsibility to be good stewards of the trust funds for the American people,” said Lee Dudek, Acting Commissioner of Social Security. “It is our duty to revise the overpayment repayment policy back to full withholding, as it was during the Obama administration and first Trump administration, to properly safeguard taxpayer funds.”
The agency strives to pay the right person the right amount at the right time, and issues correct payments to most beneficiaries. When an overpayment does occur, the agency is required by law to seek repayment.
As of March 27, the agency will begin mailing notices about the new 100 percent withholding rate, rather than the recent adjustment of just 10 percent. The withholding rate change applies to new overpayments related to Social Security benefits. The withholding rate for current beneficiaries with an overpayment before March 27 will not change and no action is required. The withholding rate for Supplemental Security Income overpayments remains 10 percent.
People who are overpaid after March 27 will automatically be placed in full recovery at a rate of 100 percent of the Social Security payment. If someone cannot afford full recovery of their overpayment, they can contact Social Security at 1-800-772-1213 or their local office to request a lower rate of recovery.
Additionally, people have the right to appeal the overpayment decision or the amount. They can ask Social Security to waive collection of the overpayment, if they believe it was not their fault and can’t afford to pay it back. The agency does not pursue recoveries while an initial appeal or waiver is pending.
For more information about overpayments and appeal rights, visit www.ssa.gov.
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Luigi
I retired mid-year, and was supposed to be exempt from earnings limits because of the “First year special rule”, spelled out in the social security work rules. I already exceed the annual limit in the first six months pre retirement, but did not earn anywhere near half the limit the second half of the year! I got a notice from SSA saying they are recouping the benefits for 6 months. Now I have to deal with this big hassle because some careless individual at SSA pushed the wrong button on their computer. I followed the rules to the letter, this is really irritating.
Ronald R.
Thank-you for your service. I was charged on my supplemental benefits .of 2 ,000 dollars. Without my noagle.now social security next month ask for it back. Now Congress saying social security to pay that back or social will be slap with a law suite. Wish was affiliated in Congress the next day .the law suite that was order . blaming on covit and .I’m merely stating that that look like scam. Some were racist comments on some. One behalf the fenger blame here we go. Now social security people on social security have right’s there constitutional rights.ob this behalf I ‘m saying to be blame for something that is not on there behalf is wrong covit yea right yea we were shut down for awhile but your putting the blame on us the we people of the United States.i want a company lawyer on my behalf to discuss this matter personally . This was my business it was personal.
David M.
To increase the repayment rate from 10% to 100% sounds absurd. Most increase are 2%-3%..or may even double…20%! This will leave some people who received too much money for a year or more due to an error by the SSA to have all of their income wiped out until the SSA gets their money back. I doubt that grandma and grandpa are getting rich!
PSS
They took 100% of mine for almost a year until they changed it to the 10% rule. Thank goodness that my overpayment was before this 100% rule sets in again.
T. H.
A great many people will suffer financially, mentally and physically. My God…… I wouldn’t dare say anything else. Only God knows what that man in office has in store for this country; what his real ulterior motive is. It would not surprise me to find out that his right hand crony or one of his minions, is reading this right now. 🤢
J ..
We have been unfairly treated by ssa due to the lack of disclosure before our case was decided after we won our revue by ssa judge they still disregarded the facts and the obvious lack of due diligence and the fact we complained to our senator and councilman! But the began retaliated against us and made us pay back money without regard and this is the first 3 years and the last seven have caused fraud impersonation UE benefits scammed from us and more!we have made at least 6 differently complaints and received one call days after trumps election!
Steve W.
If people didn’t know they had been overpaid, this seems draconian to effectively garnish 100% of their Social Security benefit. For many people that’s much or all of their income. But sure, call Social Security so you can wait on hold for hours because they’ve fired so many of their employees.
Vee
I know it can still be a substantial amount, but doesn’t the 100% repayment apply to the overpayment amount only? If the total payment was $1500 but SSA overpaid you by $500, wouldn’t you only have to pay back the $500?
Roger J.
We received 2.5% COLA for 2025, then you tax us 20% for Part B. if this is related to the economy that has doubled. So how does 2.5% add up to that.
Barbara j.
This is horrific. SS calculates the amount. If they screw up, that’s on them. I despise this administration and have compassion for all the hard working employees whose work life is about to become intolerable.
Camille K.
Do you me you over paid me my social security benefits and i have to pay the government back?
Jean H.
Is this for everyone on Social security?